Delta Won't Need Involuntary Furloughs for Ground, Flight Attendants

Delta says it 'has effectively managed staffing between now and the peak 2021 summer season for most frontline groups.'
Author:
Publish date:

Shares of Delta Air Lines  (DAL) - Get Report rose Tuesday after the carrier announced it won’t have to implement involuntary furloughs for its ground and flight attendant groups in the U.S.

“Delta has effectively managed staffing between now and the peak 2021 summer season for most frontline groups,” the airline said in a statement.

"Avoiding involuntary furloughs in this unprecedented environment is entirely due to the innovation, hard work and shared sacrifice of our people," CEO Ed Bastian said. "Our teams have done an extraordinary job identifying opportunities to spread work around and shift people into new roles that are essential to our business."

Other airlines have announced thousands of furloughs and layoffs in recent weeks, as the coronavirus pandemic has decimated air traffic.

Delta shares traded Tuesday at $33.72, up 2.73%. The stock has plummeted 42% year to date.

“Covid-19's impact to the airline industry has been staggering,” the company said. “The company responded with swift, decisive action to protect the business, from immediately parking aircraft to reducing capital expenditures. … The road to recovery has proven to be long and choppy, but Delta people have proven to be equally resilient.”

In a letter to employees, Bastian said, “in addition to voluntary leaves and departures, the 25% reduction in work hours for our ground-based employees as we've scaled down the operation has also played a significant role in protecting jobs.”

​Delta also announced that it was investing more than $12 billion in airport modernization projects that including new construction at Los Angeles International Airport and New York’s LaGuardia Airport. 

Tags
terms:
AirlinesTravel